RSS
BNR survey among bankers: for the population, the consumption loans could be ‘significantly’ tightened this winter
The banks relaxed this autumn the standards for creditation for the loans destined to purchase of houses and land offered to the population and tightened the conditions for the consumption loans, according to the BNR surveys published on Monday. For the winter of 2017, the banks estimate the constance of the standards for creditation in the case of mortgage loans, while for the consumption loans a tightening of the conditions for the latter, the quoted document says.
Thus, the banks estimate that, in the case of companies the creditation standards will be kept at the present level in Q4/2017. The demand for loans destined to the acquisition of houses and land offered to the population increased in Q3/2017 in a moderate rhythm, while in the case of the consumption loans, this is relatively unchanged against the previous quarter. The demand coming from the companies, continued to advance significantly, according to the expectations formulated by the banks in the previous quarter.
For the next three months, the institutions for creditation estimate a marginal increase of the demands in case of mortgage loans and the maintenance of the latter in the case of the loans of consumption offered to the population. For the sector of the non-financial companies, the banks anticipate that in the next three months we will assist to a continuous increase in the demand for loans, but at a moderate level.
The sector of companies
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The standards for creditation got harsher in a certain measure against the previous period for all categories of loans offered, irrespective of their maturity or the dimension of the companies. For Q4/2017 the creditation institutions expect a maintenance of the creditation standards both at aggregated level and in the structure.
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The terms of the creditation were kept at a constant level comparable to the previous period
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The demands for loans had a significant advance in Q3/2017 for all sectors, especially for loans on short term offered to the big compaies. In the context where the demand for loans increased for the nineth quarter in a row, there is the necessity to enlarge the area of creditation of the banks to the sector of companies, with a view to increasing the financial support. For Q4/2017 there is estimated a moderate increase of the demand coming from the companies. The rate of loans requested by the companies and rejected by the banks was relatively constant by comparison to the previous quarter.
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The risks associated with the companies registered a series of fluctuations: they increased for the sectors of constructions and energy while the companies working in industry are perceived as having a diminished risk against the previous quarter.
The sector of the population
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In Q3/2017 the creditation standards were relaxed moderately in the case of mortgage loans offered to the population and were tightened with the same intensity in the case of consumption loans. For the next quarter, the creditation institutions estimate the maintenance of the conditions for creditation for the loans destined to the acquisition of houses and land, while for the consumption loans they estimate a tightening of the standards.
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The terms of loans continued to evolve in a mixed way and in Q3/2017 as well. In the case of both sectors of loans destined to the population, the domestic banks tightened the standards with regard to the level of indebtedness, the spread of the average rate of interest of the loan against ROBOR for one month. By contrast, the maximum share of the loan in the value of the mortgage guarantee (LTV) and the costs of the loan different from the interest for the mortgage loans and the maximum ceiling for the value of the loan in case of consumption loans were relaxed significantly, and moderately respectively.
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In Q3/2017 the demand for loans increased moderately in the case of loans destined to the acquisition of houses and land,while in the case of consumption loans offered to the population, they were stable against the level of the previous quarter. For the next three months, the lending institutions anticipate the marginal increase of the demand for mortgage loans and the constant maintenance in the case of consumption loans. The rate of rejected requests by the banks was stable against the evolutions of the previous quarter on both sectors for loans destined to the population.
We mention the fact that Florin Neagu, the deputy manager of the Department for Financial Stability drew the attention on the speed with which the loans offered to the population increased and suggested that a ceiling might be imposed for the degree of indebtedness of the client if the alert threshold was surpassed. At present, the threshold was surpassed. Among the measures taken and which had been taken in the past is the limitation of the degree of indebtedness.’ We have introduced in 2004 two instruments Loan to value – LTV ( the advance has to be brought if you want a loan) and Debt Service to income (the value of the instalment against the salary). And we have some ceilings. Then it was considered that two instruments affect the free circulation of the capitals and we were encouraged to get rid of them. And we did. Now, the same two instruments are re-named as macroprudential measures and we are encouraged to take them’ Neagu said.